KDSB fails to get civil suits resolved through arbitration

PUTRAJAYA, June 27 (Bernama) -- Kuala Dimensi Sdn Bhd (KDSB) failed in its final attempt to get two civil suits filed against the company by Port Klang Authority (PKA) to recover RM920 million, resolved through arbitration.

Chief Judge of Malaya Tan Sri Arifin Zakaria chairing a three-man Federal Court panel denied KDSB leave to appeal against the order of the appellate court that the two suits be tried at the Shah Alam High Court.

On Sept 25 2009, PKA slapped two suits on KDSB, the turnkey contractor for Port Klang Free Zone (PKFZ), over disputed claims for work done for controversial project.

In the first suit against KDSB, PKA sought a declaration that the increase in the annual interest rate in respect of a supplementary agreement for additional development work signed in April 2006 was null and void.

PKA also sued KDSB and the project's consultant, BTA Architect, concerning key development agreements and supplementary agreements signed between February 2003 and November 2006.

In this suit, PKA had sought, among others, remedies, declaratory orders and damages against both defendants.

On June 7 last year, the Shah Alam High Court granted KDSB's application to stay the court proceedings and to refer the matter to arbitration.

On Oct 1 last year, the appellate court reversed the decision after allowing PKA's appeal and ordered that the suits to be resolved via full trial in court and not through arbitration.